Seventeen years from now, half the global stock of capital, totaling $158 trillion (in 2010 dollars), will reside in the developing world, compared to less than one-third today, with countries in East Asia and Latin America accounting for the largest shares of this stock, says the latest edition of the World Bank’s Global Development Horizons (GDH) report, which explores patterns of investment, saving and capital flows as they are likely to evolve over the next two decades.

Developing countries’ share in global investment is projected to triple by 2030 to three-fifths, from one-fifth in 2000, says the report, titled ‘Capital for the Future: Saving and Investment in an Interdependent World’. With world population set to rise from 7 billion in 2010 to 8.5 billion 2030 and rapid aging in the advanced countries, demographic changes will profoundly influence these structural shifts.

“GDH is one of the finest efforts at peering into the distant future. It does this by marshaling an amazing amount of statistical information,” said Kaushik Basu, the World Bank’s Senior Vice President and Chief Economist. “We know from the experience of countries as diverse as South Korea, Indonesia, Brazil, Turkey and South Africa the pivotal role investment plays in driving long-term growth. In less than a generation, global investment will be dominated by the developing countries. And among the developing countries, China and India are expected to be the largest investors, with the two countries together accounting for 38 percent of the global gross investment in 2030. All this will change the landscape of the global economy, and GDH analyzes how.”

Productivity catch-up, increasing integration into global markets, sound macroeconomic policies, and improved education and health are helping speed growth and create massive investment opportunities, which, in turn, are spurring a shift in global economic weight to developing countries. A further boost is being provided by the youth bulge. With developing countries on course to add more than 1.4 billion people to their combined population between now and 2030, the full benefit of the demographic dividend has yet to be reaped, particularly in the relatively younger regions of Sub-Saharan Africa and South Asia.

The good news is that, unlike in the past, developing countries will likely have the resources needed to finance these massive future investments for infrastructure and services, including in education and health care. Strong saving rates in developing countries are expected to peak at 34 percent of national income in 2014 and will average 32 percent annually until 2030. In aggregate terms, the developing world will account for 62-64 percent of global saving of $25-27 trillion by 2030, up from 45 percent in 2010.

“Despite strong saving levels to finance their massive investment needs in the future, developing countries will need to significantly improve their currently limited participation in international financial markets if they are to reap the benefits of the tectonic shifts taking place,” said Hans Timmer, Director of the Bank’s Development Prospects Group.

GDH paints two scenarios, based on the speed of convergence between the developed and developing worlds in per capita income levels, and the pace of structural transformations (such as financial development and improvements in institutional quality) in the two groups. Scenario one entails a gradual convergence between the developed and developing world while a much more rapid scenario is envisioned in the second.

The gradual and rapid scenarios predict average world economic growth of 2.6 percent and 3 percent per year, respectively, during the next two decades; the developing world’s growth will average an annual rate of 4.8 percent in the gradual convergence scenario and 5.5 percent in the rapid one.

In both scenarios, developing countries’ employment in services will account for more than 60 percent of their total employment by 2030 and they will account for more than 50 percent of global trade. This shift will occur alongside demographic changes that will increase demand for infrastructural services. Indeed, the report estimates the developing world’s infrastructure financing needs at $14.6 trillion between now and 2030.

The report also points to aging populations in East Asia, Eastern Europe and Central Asia, which will see the largest reductions in saving rates. Demographic change will test the sustainability of public finances and complex policy challenges will arise from efforts to reduce the burden of health care and pensions without imposing severe hardships on the old. In contrast, Sub-Saharan Africa, with its relatively young and rapidly growing population as well as robust economic growth, will be the only region not experiencing a decline in its saving rate.

In absolute terms, however, saving will continue to be dominated by Asia and the Middle East. In the gradual convergence scenario, in 2030, China will save far more than any other developing country — $9 trillion in 2010 dollars — with India a distant second with $1.7 trillion, surpassing the levels of Japan and the United States in the 2020s.

As a result, under the gradual convergence scenario, China will account for 30 percent of global investment in 2030, with Brazil, India and Russia together accounting for another 13 percent. In terms of volumes, investment in the developing world will reach $15 trillion (in 2010 dollars), versus $10 trillion in high-income economies. China and India will account for almost half of all global manufacturing investment.

“GDH clearly highlights the increasing role developing countries will play in the global economy. This is undoubtedly a significant achievement. However, even if wealth will be more evenly distributed across countries, this does not mean that, within countries, everyone will equally benefit,” said Maurizio Bussolo, Lead Economist and lead author of the report.

The report finds that the least educated groups in a country have low or no saving, suggesting an inability to improve their earning capacity and, for the poorest, to escape a poverty trap.

“Policy makers in developing countries have a central role to play in boosting private saving through policies that raise human capital, especially for the poor,” concluded Bussolo.

Regional Highlights:

East Asia and the Pacific will see its saving rate fall and its investment rate will drop by even more, though they will still be high by international standards. Despite these lower rates, the region’s shares of global investment and saving will rise through 2030 due to robust economic growth. The region is experiencing a big demographic dividend, with fewer than 4 non-working age people for every 10 working age people, the lowest dependency ratio in the world. This dividend will end after reaching its peak in 2015. Labor force growth will slow, and by 2040 the region may have one of the highest dependency ratios of all developing regions (with more than 5.5 non-working age people for every 10 working age people). China, a big regional driver, is expected to continue to run substantial current account surpluses, due to large declines in its investment rate as it transitions to a lower level of public involvement in investment.

Eastern Europe and Central Asia is the furthest along in its demographic transition, and will be the only developing region to reach zero population growth by 2030. Aging is expected to moderate economic growth in the region, and also has the potential to bring down the saving rate more than any developing region, apart from East Asia. The region’s saving rate may decline more than its investment rate, in which case countries in the region will have to finance investment by attracting more capital flows. The region will also face significant fiscal pressure from aging. Turkey, for example, would see its public pension spending increase by more than 50 percent by 2030 under the current pension scheme. Several other countries in the region will also face large increases in pension and health care expenditures.

Latin America and the Caribbean, a historically low-saving region, may become the lowest-saving region by 2030. Although demographics will play a positive role, as dependency ratios are projected to fall through 2025, financial market development (which reduces precautionary saving) and a moderation in economic growth will play a counterbalancing role. Similarly, the rising and then falling impact of demography on labor force growth means that the investment rate is expected to rise in the short run, and then gradually fall. However, the relationship between inequality and saving in the region suggests an alternative scenario. As in other regions, poorer households tend to save much less; thus, improvements in earning capacity, rising incomes, and reduced inequality have the potential not only to boost national saving but, more importantly, to break poverty traps perpetuated by low saving by poor households.

The Middle East and North Africa has significant scope for financial market development, which has the potential to sustain investment but also, along with aging, to reduce saving. Thus, current account surpluses may also decline moderately up to 2030, depending on the pace of financial market development. The region is in a relatively early phase of its demographic transition: characterized by a still fast growing population and labor force, but also a rising share of elderly. Changes in household structure may also impact saving patterns, with a transition from intergenerational households and family-based old age support to smaller households and greater reliance on asset income in old age. The region has the lowest use of formal financial institutions for saving by low-income households, and scope for financial markets to play a significantly greater role in household saving.

South Asia will remain one of the highest saving and highest investing regions until 2030. However, with the scope for rapid economic growth and financial development, results for saving, investment, and capital flows will vary significantly: in a scenario of more rapid economic growth and financial market development, high investment rates will be sustained while saving falls significantly, implying large current account deficits. South Asia is a young region, and by about 2035 is likely to have the highest ratio of working- to nonworking-age people of any region in the world. The general shift in investment away from agriculture towards manufacturing and service sectors is likely to be especially pronounced in South Asia, with the region’s share of total investment in manufacturing expected to nearly double, and investment in the service sector to increase by more than 8 percentage points, to over two-thirds of total investment.

Sub-Saharan Africa’s investment rate will be steady due to robust labor force growth. It will be the only region to not see a decrease in its saving rate in a scenario of moderate financial market development, since aging will not be a significant factor. In a scenario of faster growth, poorer African countries will experience deeper financial market development, and foreign investors will become increasingly willing to finance investment in the region. Sub-Saharan Africa is currently the youngest of all regions, with the highest dependency ratio. This ratio will steadily decrease throughout the time horizon of this report and beyond, bringing a long lasting demographic dividend. The region will have the greatest infrastructure investment needs over the next two decades (relative to GDP). At the same time, there will likely be a shift in infrastructure investment financing toward greater participation by the private sector, and substantial increases in private capital inflows, particularly from other developing regions.

In less than a generation, global saving and investment will be dominated by the developing world, says the just-released Global Development Horizons (GDH) report.

By 2030, half the global stock of capital, totaling $158 trillion (in 2010 dollars), will reside in the developing world, compared to less than one-third today, with countries in East Asia and Latin America accounting for the largest shares of this stock, says the report, which explores patterns of investment, saving and capital flows as they are likely to evolve over the next two decades.

Titled ‘Capital for the Future: Saving and Investment in an Interdependent World’, GDH projects developing countries’ share in global investment to triple by 2030 to three-fifths, from one-fifth in 2000.

A further boost is being provided by the youth bulge. By 2020, less than 7 years from now, growth in world’s working-age population will be exclusively determined by developing countries. With developing countries on course to add more than 1.4 billion people to their combined population between now and 2030, the full benefit of the demographic dividend has yet to be reaped, particularly in the relatively younger regions of Sub-Saharan Africa and South Asia.

GDH paints two scenarios, based on the speed of convergence between the developed and developing worlds in per capita income levels, and the pace of structural transformations (such as financial development and improvements in institutional quality) in the two groups. Scenario one entails a gradual convergence between the developed and developing world while a much more rapid one is envisioned in the second.

In both scenarios, developing countries’ employment in services will account for more than 60 percent of their total employment by 2030 and they will account for more than 50 percent of global trade. This shift will occur alongside demographic changes that will increase demand for infrastructural services. Indeed, the report estimates the developing world’s infrastructure financing needs at $14.6 trillion between now and 2030.

The report also points to aging populations in East Asia, Eastern Europe and Central Asia, which will see the largest reductions in private saving rates. Demographic change will test the sustainability of public finances and complex policy challenges will arise from efforts to reduce the burden of health care and pensions without imposing severe hardships on the old. In contrast, Sub-Saharan Africa, with its relatively young and rapidly growing population as well as robust economic growth, will be the only region not experiencing a decline in its saving rate.

Policy makers in developing countries have a central role to play in boosting private saving through policies that raise human capital, especially for the poor.

Maurizio Bussolo Lead Author, Global Development Horizons 2013

In absolute terms, however, saving will continue to be dominated by Asia and the Middle East. In the gradual convergence scenario, in 2030, China will save far more than any other developing country — $9 trillion in 2010 dollars — with India a distant second with $1.7 trillion, surpassing the levels of Japan and the United States in the 2020s.

As a result, under the gradual convergence scenario, China will account for 30 percent of global investment in 2030, with Brazil, India and Russia together accounting for another 13 percent. In terms of volumes, investment in the developing world will reach $15 trillion (in 2010 dollars), versus $10 trillion in high-income economies. Again, China and India will be the largest investors among developing countries, with the two countries combined representing 38 percent of the global gross investment in 2030, and they will account for almost half of all global manufacturing investment.

“GDH clearly highlights the increasing role developing countries will play in the global economy. This is undoubtedly a significant achievement. However, even if wealth will be more evenly distributed across countries, this does not mean that, within countries, everyone will equally benefit,” said Maurizio Bussolo, Lead Economist and lead author of the report.

The report finds that the least educated groups in a country have low or no saving, suggesting an inability to improve their earning capacity and, for the poorest, to escape a poverty trap.

“Policy makers in developing countries have a central role to play in boosting private saving through policies that raise human capital, especially for the poor,” concluded Bussolo.

Regional Highlights:

East Asia and the Pacific will see its saving rate fall and its investment rate will drop by even more, though they will still be high by international standards. Despite these lower rates, the region’s shares of global investment and saving will rise through 2030 due to robust economic growth. The region is experiencing a big demographic dividend, with fewer than 4 non-working age people for every 10 working age people, the lowest dependency ratio in the world. This dividend will end after reaching its peak in 2015. Labor force growth will slow, and by 2040 the region may have one of the highest dependency ratios of all developing regions (with more than 5.5 non-working age people for every 10 working age people). China, a big regional driver, is expected to continue to run substantial current account surpluses, due to large declines in its investment rate as it transitions to a lower level of public involvement in investment.

Eastern Europe and Central Asia is the furthest along in its demographic transition, and will be the only developing region to reach zero population growth by 2030. Aging is expected to moderate economic growth in the region, and also has the potential to bring down the saving rate more than any developing region, apart from East Asia. The region’s saving rate may decline more than its investment rate, in which case countries in the region will have to finance investment by attracting more capital flows. The region will also face significant fiscal pressure from aging. Turkey, for example, would see its public pension spending increase by more than 50 percent by 2030 under the current pension scheme. Several other countries in the region will also face large increases in pension and health care expenditures.

Latin America and the Caribbean, a historically low-saving region, may become the lowest-saving region by 2030. Although demographics will play a positive role, as dependency ratios are projected to fall through 2025, financial market development (which reduces precautionary saving) and a moderation in economic growth will play a counterbalancing role. Similarly, the rising and then falling impact of demography on labor force growth means that the investment rate is expected to rise in the short run, and then gradually fall. However, the relationship between inequality and saving in the region suggests an alternative scenario. As in other regions, poorer households tend to save much less; thus, improvements in earning capacity, rising incomes, and reduced inequality have the potential not only to boost national saving but, more importantly, to break poverty traps perpetuated by low saving by poor households.

The Middle East and North Africa has significant scope for financial market development, which has the potential to sustain investment but also, along with aging, to reduce saving. Thus, current account surpluses may also decline moderately up to 2030, depending on the pace of financial market development. The region is in a relatively early phase of its demographic transition: characterized by a still fast growing population and labor force, but also a rising share of elderly. Changes in household structure may also impact saving patterns, with a transition from intergenerational households and family-based old age support to smaller households and greater reliance on asset income in old age. The region has the lowest use of formal financial institutions for saving by low-income households, and scope for financial markets to play a significantly greater role in household saving.

South Asia will remain one of the highest saving and highest investing regions until 2030. However, with the scope for rapid economic growth and financial development, results for saving, investment, and capital flows will vary significantly: in a scenario of more rapid economic growth and financial market development, high investment rates will be sustained while saving falls significantly, implying large current account deficits. South Asia is a young region, and by about 2035 is likely to have the highest ratio of working- to nonworking-age people of any region in the world. The general shift in investment away from agriculture towards manufacturing and service sectors is likely to be especially pronounced in South Asia, with the region’s share of total investment in manufacturing expected to nearly double, and investment in the service sector to increase by more than 8 percentage points, to over two-thirds of total investment.

Sub-Saharan Africa’s investment rate will be steady due to robust labor force growth. It will be the only region to not see a decrease in its saving rate in a scenario of moderate financial market development, since aging will not be a significant factor. In a scenario of faster growth, poorer African countries will experience deeper financial market development, and foreign investors will become increasingly willing to finance investment in the region. Sub-Saharan Africa is currently the youngest of all regions, with the highest dependency ratio. This ratio will steadily decrease throughout the time horizon of this report and beyond, bringing a long lasting demographic dividend. The region will have the greatest infrastructure investment needs over the next two decades (relative to GDP). At the same time, there will likely be a shift in infrastructure investment financing toward greater participation by the private sector, and substantial increases in private capital inflows, particularly from other developing regions.

The International Monetary Fund (IMF) says Gambia’s newly introduced Tax collection system — the Value Added Tax (VAT)- is killing the country’s ailing economy and businesses. “The outlook for the economy is generally favorable for 2013, but there are risks. Real GDP growth is expected to accelerate, if the recovery in crop production is sustained.

Also, by accessing new markets, the potential for growth in tourism looks good. Inflation, however, has picked up, partly due to side effects from the introduction of the value-added tax (VAT) at the beginning of the year. For example, although the VAT is applied to firms with a turnover of at least one million dalasis, we understand that many smaller businesses also raised their prices opportunistically. During the first quarter of 2013, government spending once again exceeded planned allocations, contributing to an uptick in Treasury-bill yields. Correspondingly high bank lending rates are discouraging private sector borrowing,” a report issued by an IMF delegation who just concluded discussions with the Gambian authorities on the first review of the ECF arrangement.

The IMF delegation led by David Dunn is also not impressed by Gambia’s recent economic performance. Inflation is on the rise while government spending is jumping the roof.

“The Gambian economy is still recovering from the severe drought of 2011. Real gross domestic product (GDP) grew by an estimated 4 percent in 2012, led by a partial rebound in crop production and strength in the tourism sector. Inflation remained under control, ending the year at just under 5 percent, despite the depreciation of the Gambian dalasi during the second half of the year. A substantial overrun in government spending late in the year resulted in higher-than-budgeted domestic borrowing (3½ percent of GDP),” Mr. Dunn said.

Mr. Amadou Colley, Governor of Gambia’s Central Bank earlier this week tried to mislead the press and the nation by depicting a wrong picture of the economy. Colley failed to share the IMF team’s fact finding mission’s report. He instead furnished the press with a different picture of the realities on the ground. His sources are questionable—given the fact that this administration’s reputation of trying to monopolize the truth is evident on their modus operandi.

CBG's governor Amadou Kolley

“The Gambia Bureau of Statistics (GBoS), the Gambia economy is estimated to have grown by 6.3 percent in 2012 following a contraction of 4.6 percent in 2011; agriculture valued-added increased by 7.5 percent, industry (6.6 percent) and services (5.8 percent). Money supply grew by 8.8 percent in the year to end-March 2013, lower than the 14.9 percent in 2012. Both narrow money and quasi money grew by 16.3 percent and 2.7 percent compared to 7.8 percent and 9.3 percent respectively a year earlier,” Mr. Colley claimed.

“While reserve money grew by 3.4 percent, lower than the 8.7 percent in March 2012 and the target of 4.8 percent, he said the provisional data on government fiscal operations in the first quarter of 2013 indicate that revenue and grants amounted to D1.5 billion (4.6 percent of GDP) compared to D1.9 billion (5.9 percent of GDP) in the same period in 2012. “Domestic revenue totaled D1.4 billion (4.2 percent of GDP), higher than the D1.2 billion (3.7 percent of GDP) recorded in the corresponding period of 2012.”

Mr. Colley admitted that Gambia’s inflation is going out of hand. As such, Colley said, prices for basic commodities, utilities, and energy are going up.

“While consumer food inflation rose from 4.8 percent in March 2012 to 6.4 percent in March 2013 driven mainly by price developments in bread cereals, the consumer non-food inflation also rose to 4.1 percent in March 2013 from 2.7 percent in March 2012 partly reflecting the increase in the cost of energy. Core inflation, which includes the prices to utilities, energy and volatile food items, increased to 5.3 percent from 4.0 percent a year earlier,” Mr. Colley told the local press here.

But IMF’S David Dunn is not optimistic about the country’s Gross Domestic Product (GDP). The country’s past crop failure is impacting negatively on the economy. He said VAT is killing the private sector. Businesses are being overtaxed.

IMF’S David Dunn

“The outlook for the economy is generally favorable for 2013, but there are risks. Real GDP growth is expected to accelerate, if the recovery in crop production is sustained. Also, by accessing new markets, the potential for growth in tourism looks good. Inflation, however, has picked up, partly due to side effects from the introduction of the value-added tax (VAT) at the beginning of the year. For example, although the VAT is applied to firms with a turnover of at least one million dalasis, we understand that many smaller businesses also raised their prices opportunistically. During the first quarter of 2013, government spending once again exceeded planned allocations, contributing to an uptick in Treasury-bill yields,” Mr. Dunn stated.

While Central Bank Governor Amadou Colley is bragging about the so called performance of the banking sector, Mr. Dunn had a complete different view about Gambia’s banking industry.

ROME, Italy, May 13, 2013/African Press Organization (APO)/ – Forests, trees on farms and agroforestry are critical in the fight against hunger and should be better integrated into food security and land use policies, FAO Director-General José Graziano da Silva said today at the International Conference on Forests for Food Security and Nutrition in Rome (13-15 May).

“Forests contribute to the livelihoods of more than a billion people, including many of the world’s neediest. Forests provide food, fuel for cooking, fodder for animals and income to buy food,” Graziano da Silva said.

“Wild animals and insects are often the main protein source for people in forest areas, while leaves, seeds, mushrooms, honey and fruits provide minerals and vitamins, thus ensuring a nutritious diet.”

“But forests and agroforestry systems are rarely considered in food security and land use policies. Often, rural people do not have secure access rights to forests and trees, putting their food security in danger. The important contributions forests can make to the food security and nutrition of rural people should be better recognized,” Graziano da Silva said.

Frittered critters – wild and farm-raised insects

One major and readily available source of nutritious and protein-rich food that comes from forests are insects, according to a new study FAO launched at the forests for food security and nutrition conference. It is estimated that insects form part of the traditional diets of at least 2 billion people. Insect gathering and farming can offer employment and cash income, for now mostly at the household level but also potentially in industrial operations.

An astounding array of creatures

With about 1 million known species, insects account for more than half of all living organisms classified so far on the planet.

According to FAO’s research, done in partnership with Wageningen University in the Netherlands, more than 1900 insect species are consumed by humans worldwide. Globally, the most consumed insects are: beetles (31 percent); caterpillars (18 percent); bees, wasps and ants (14 percent); and grasshoppers, locusts and crickets (13 percent). Many insects are rich in protein and good fats and high in calcium, iron and zinc. Beef has an iron content of 6 mg per 100 g of dry weight, while the iron content of locusts varies between 8 and 20 mg per 100 g of dry weight, depending on the species and the kind of food they themselves consume.

First steps for the squeamish

“We are not saying that people should be eating bugs,” said Eva Muller, Director of FAO’s Forest Economic Policy and Products Division, which co-authored “Edible insects: Future prospects for food and feed security”.

“We are saying that insects are just one resource provided by forests, and insects are pretty much untapped for their potential for food, and especially for feed,” Muller explained.

Farming insects sustainably could help avoid over-harvesting, which could affect more prized species. Some species, such as meal worms, are already produced at commercial levels, since they are used in niche markets such as pet food, for zoos and in recreational fishing.

If production were to be further automated, this would eventually bring costs down to a level where industry would profit from substituting fishmeal, for example, with insect meal in livestock feed. The advantage would be an increase in fish supplies available for human consumption.

Bugs get bigger on less

Because they are cold-blooded, insects don’t use energy from feed to maintain body temperature. On average, insects use just 2 kg of feed to produce 1 kilo of insect meat. Cattle, at the other end of the spectrum, require 8 kg of feed to produce 1 kg of beef.

In addition, insects produce a fraction of emissions such as methane, ammonia, climate-warming greenhouse gases and manure, all of which contaminate the environment. In fact, insects can be used to break down waste, assisting in the composting processes that deliver nutrients back to the soil while also diminishing foul odours.

Enabling policies lacking

However, legislation in most industrialized nations forbids the actual feeding of waste materials and slurry or swill to animals, even though this would be the material that insects normally feed on. Further research would be necessary, especially as regards the raising of insects on waste streams. But it is widely understood by scientists that insects are so biologically different from mammals that it is highly unlikely that insect diseases could be transmitted to humans.

Regulations often also bar using insects in food for human consumption, although with a growing number of novel food stores and restaurants cropping up in developed countries, it seems to be largely tolerated.

As with other types of food, hygienic production, processing and food preparation will be important to avoid the growth of bacteria and other micro-organisms that could affect human health. Food safety standards can be expanded to include insects and insect-based products, and quality control standards along the production chain will be key to creating consumer confidence in feed and food containing insects or derived from insects.

“The private sector is ready to invest in insect farming. We have huge opportunities before us,” said Paul Vantomme, one of the authors of the report. “But until there is clarity in the legal sphere, no major business is going to take the risk to invest funds when the laws remains unclear or actually hinders development of this new sector,” he explained.

CAPE-TOWN, South-Africa /African Press Organization (APO)/ – The Honourable Julian Fantino, Minister of International Cooperation, attended the World Economic Forum on Africa, Grow Africa Investment Forum, and G-8 New Alliance for Food Security and Nutrition Leadership Council in Cape Town, South Africa, to promote private sector partnerships as a way to achieve innovative solutions to the challenges facing sustainable agricultural development, food security, and nutrition in Africa.

“Canada has long supported food security and sustainable agricultural development throughout the African continent and recognizes the key role the private sector plays in agriculture as well,” said Minister Fantino. “One of Canada’s key goals in Africa has been to create new partnerships with the private sector to drive agricultural transformation, improve nutrition, and encourage sustainable economic growth that will benefit people across Africa.”

Canada welcomes a greater role for the private sector in increasing food security, complementing core public sector functions. Canada is taking an active role in the New Alliance for Food Security and Nutrition, launched in 2012 by the G-8, and is a strong supporter of the Grow Africa Investment Forum and the World Economic Forum on Africa, which aim to accelerate economic diversification, boost strategic infrastructure, and unlock Africa’s potential to facilitate new partnerships between African governments and the private sector to stimulate investment.

Canada remains committed to helping African people gain access to sufficient, safe, and nutritious food. Agriculture is the engine for sustainable economic growth in many developing countries. Investments in agriculture help to provide people with a source of employment, which in turn increases food security and household income—key contributors to poverty eradication. Many of our initiatives support small-scale farmers, women in particular, to grow nutritious and diversified crops.

Canada is committed to sustainable agricultural development, especially strengthening food security and the resilience of vulnerable populations. Economic Action Plan 2013 reaffirms Canada’s commitment to international development investments in agriculture, food security and nutrition. The new Department of Foreign Affairs, Trade and Development will maintain the mandate of poverty alleviation, and help achieve greater efficiency, accountability, and focus to continue to improve the lives of people in need around the world.

2012 Sustainability Report proves that Standard Bank’s strategy and sustainability programmes are mutually reinforcing and have served the company well in the past 12 months

Johannesburg, 2 May 2013 – Standard Bank Group’s 2012 Sustainability Report indicates that the Group’s repositioning several years ago to focus on Africa and, therefore, linking its own sustainability with that of the people and businesses of the continent is paying dividends – for both the Group and its markets.

By embedding sustainability thinking and sustainable business practices at every level of the business, the Standard Bank Group (SBG) has, among others:

·Prevented fraud to the value of R1,1 billion

·Created R60 billion in wealth

·Banked more than 661 000 SMEs across Africa

·Enabled Standard Bank South Africa (SBSA) to spend R125 million in corporate social investment

“Only a banking group that is organisationally and financially healthy can deliver these kinds of sustainability results for its internal and external stakeholders,” says Karin Ireton, Head of Sustainability Management for Standard Bank. “So, our sustainability priority is to ensure that we operate in a way that makes business sense for us.

“The maturing of our sustainability reporting gives us the ability to articulate and assess the value that sustainability management has for the Group. Making a commitment to better reporting to our stakeholders has the potential to improve the business.”

An example of the objectivity of Standard Bank’s reporting is the fact that this year’s report shows that the CO2 emissions for Standard Bank South Africa were 412 089 metric tons in 2012 as against 180 403 in 2011.

This is not because the bank’s carbon footprint has worsened but because its measure of energy usage has improved. The bank has designed an innovative methodology by means of which it can understand the costs of energy in an organisation running hundreds of sites, most with different energy suppliers, all billing in different ways.

“The information we now have enables us to make better decisions about reducing our carbon footprint across both our ATM network and our multiple branches and offices all with different lighting configurations and different levels of computer, air-conditioning, and photocopier usage,” Ms Ireton says.

SBG not only ensures that all strategic decisions incorporate sustainability related insight and analysis as well as intelligence gained from its stakeholder engagement activities, it also focuses on instilling an inclusive business culture and leadership style through its operations.

As a consequence, some of the success stories in the 2012 Sustainability Report include advances in transformation, inclusive and responsible banking products and services, and infrastructure, renewable energy, affordable housing, and agriculture financing.

“One of the reasons SBG has reached the venerable age of 150 years, is that it has always been responsive to the issues of the times,” Ms Ireton says. “In the modern era, sustainability is the issue, and the Group is responding to it holistically and in an integrated way.”

Local and international acknowledgement of SBG’s sustainability strategy includes:

·Corporate Knights Inc. 2013 Global 100 Most Sustainable Corporations in the World – SBG was the only African company included, ranking 98th

For the African Development Bank (AfDB), transforming Africa’s economies entails diversifying and expanding the sources of economic growth and opportunity in a manner that promotes greater productivity for sustained and inclusive economic development.

“A major policy challenge for Africa today is how to broaden access to economic opportunities for its expanding population, including the most vulnerable groups,” the Bank says in its 2012 Annual Report, which will be presented to the institution’s Governors at the Marrakech meetings.

“Africa requires structural transformation to propel it towards inclusive growth,” the report says, citing high unemployment and underemployment especially among young people and women, as one of the main problems facing the continent today.

AfDB's headquarters in Abidjan, Cote D'ivoire

Structural transformation will not materialize unless there is a concomitant investment in skills development in areas that have kept the continent behind other developing regions. In this regard, Africa needs to harness its natural resources to build skills for its youthful population in order to leapfrog development and secure a place in the global value chain. Developing skills will unleash the dynamism of Africa’s untapped entrepreneurship potential, creating opportunities for increased job and wealth creation. An enlightened population is also important in Africa’s global engagement in trade and commerce.

“The key message is that Africa should accelerate its structural transformation by boosting the potential of its youthful population, investing in science and technology and innovation, speeding up its rate of economic integration, greening the economy and supporting private sector enterprise,” the report emphasized.

The report identifies leadership, degree of economic integration at the national, regional and global levels, as well as inclusive growth as the key factors that can influence transformation. Regional political events, weather, and price shocks must also be taken into consideration.

Mr. Donald Kaberuka

According to the report, Africa’s transformation can be realized by leveraging the huge potentials in some of the following areas:

- Infrastructure – Africa’s infrastructure financing needs — about USD 390 billion in the medium term, mostly for power and energy — are in the USD trillions in the longer term.

- Natural resources – It is estimated that Africa’s natural resource extractive industries will contribute over USD 30 billion per annum in government revenues in the next 20 years.

- Revenues from natural resources could finance a substantial part of Africa’s infrastructure development. Some countries have already issued Eurobonds for infrastructure, on the basis of natural-resource revenues.

- Demographics – Young people comprise the bulk of Africa’s one billion population. To convert this “youth bulge” into a “demographic dividend” will require investing in skills and the creation of job opportunities on a large and unprecedented scale.

- Promoting agriculture – the agriculture sector employs the vast majority of Africa’s population, and provides direct inputs to the agro-processing value chain, supplies food to urban areas, and is a source of household savings for investment.

- The Private Sector – As Africa’s economies expand, the private sector, which accounts for 90 per cent of informal employment, will become even more important, especially in industry.

- Urbanization –- Africa’s cities, with 40 per cent of the population in 2010 — projected to be 50 per cent in a generation, and 65 per cent by 2060 — are increasingly becoming the drivers of consumer demand and hence economic growth.

The strategies to unlock Africa’s potential reside in elimination of the causes of national and regional conflict to bring peace; visionary leadership and strong and effective government institutions, while empowering women and youth; strengthening human capital development through education and training, especially in science and technology, and improvements in basic services; fostering diversification, especially in agriculture and rural areas, including sustainable greening of the economy and promotion of manufacturing; and promoting intra-Africa trade through increased domestic and regional investment, and forging strong trade links with emerging partners.

The Bank will continue to support and monitor the transformation efforts of the Regional Member Countries. Accordingly, the Bank has adopted a 10-year strategy whose overarching goal is to promote socially inclusive and environmentally sustainable economic growth. The core operational priorities of this strategy include infrastructure development; regional integration; private sector development; governance and accountability; as well as skills and technology development.

MARRAKECH, Morocco, April 23, 2013/African Press Organization (APO)/ – The African Development Bank (AfDB) Group’s 2013 Annual Meetings (http://www.afdb.org) take place from 27-31 May in Marrakech, Morocco. The 48th meetings of the AfDB and the 39th meetings of the African Development Fund (ADF) will be held under the central theme of “Structural Transformation in Africa.”

For the AfDB, transforming Africa’s economies entails diversifying and expanding the sources of economic growth and opportunity in a manner that promotes greater productivity for sustained and inclusive economic development.

“A major policy challenge for Africa today is how to broaden access to economic opportunities for its expanding population, including the most vulnerable groups,” the Bank says in its 2012 Annual Report, which will be presented to the institution’s Governors at the Marrakech meetings.

“Africa requires structural transformation to propel it towards inclusive growth,” the report says, citing high unemployment and underemployment especially among young people and women, as one of the main problems facing the continent today.

Structural transformation will not materialize unless there is a concomitant investment in skills development in areas that have kept the continent behind other developing regions. In this regard, Africa needs to harness its natural resources to build skills for its youthful population in order to leapfrog development and secure a place in the global value chain. Developing skills will unleash the dynamism of Africa’s untapped entrepreneurship potential, creating opportunities for increased job and wealth creation. An enlightened population is also important in Africa’s global engagement in trade and commerce.

“The key message is that Africa should accelerate its structural transformation by boosting the potential of its youthful population, investing in science and technology and innovation, speeding up its rate of economic integration, greening the economy and supporting private sector enterprise,” the report emphasized.

The report identifies leadership, degree of economic integration at the national, regional and global levels, as well as inclusive growth as the key factors that can influence transformation. Regional political events, weather, and price shocks must also be taken into consideration.

According to the report, Africa’s transformation can be realized by leveraging the huge potentials in some of the following areas:

- Infrastructure – Africa’s infrastructure financing needs — about USD 390 billion in the medium term, mostly for power and energy — are in the USD trillions in the longer term.

- Natural resources – It is estimated that Africa’s natural resource extractive industries will contribute over USD 30 billion per annum in government revenues in the next 20 years.

- Revenues from natural resources could finance a substantial part of Africa’s infrastructure development. Some countries have already issued Eurobonds for infrastructure, on the basis of natural-resource revenues.

- Demographics – Young people comprise the bulk of Africa’s one billion population. To convert this “youth bulge” into a “demographic dividend” will require investing in skills and the creation of job opportunities on a large and unprecedented scale.

- Promoting agriculture – the agriculture sector employs the vast majority of Africa’s population, and provides direct inputs to the agro-processing value chain, supplies food to urban areas, and is a source of household savings for investment.

- The Private Sector – As Africa’s economies expand, the private sector, which accounts for 90 per cent of informal employment, will become even more important, especially in industry.

- Urbanization –- Africa’s cities, with 40 per cent of the population in 2010 — projected to be 50 per cent in a generation, and 65 per cent by 2060 — are increasingly becoming the drivers of consumer demand and hence economic growth.

The strategies to unlock Africa’s potential reside in elimination of the causes of national and regional conflict to bring peace; visionary leadership and strong and effective government institutions, while empowering women and youth; strengthening human capital development through education and training, especially in science and technology, and improvements in basic services; fostering diversification, especially in agriculture and rural areas, including sustainable greening of the economy and promotion of manufacturing; and promoting intra-Africa trade through increased domestic and regional investment, and forging strong trade links with emerging partners.

The Bank will continue to support and monitor the transformation efforts of the Regional Member Countries. Accordingly, the Bank has adopted a 10-year strategy whose overarching goal is to promote socially inclusive and environmentally sustainable economic growth. The core operational priorities of this strategy include infrastructure development; regional integration; private sector development; governance and accountability; as well as skills and technology development.

Distributed by the African Press Organization on behalf of the African Development Bank.

Industry experts are now predicting that the continent’s agriculture could triple in economic size in coming years, (topping a trillion dollars by 2030) fuelled by the massive increase in domestic and international demand. This Forum which will be attended key stakeholders in Africa agriculture sector and there is no better forum to showcase your products and strengthen your traction in this market. Opportunities exist in fertilizer supply, silos, farm machinery etc. Participation and sponsorship of the Africa Food Security Conference & Agri Exhibition will denote your company’s leadership in this sector

Food security has become a growing concern for governments and industry leaders and has become a focus of reform for most African states. However, ensuring food security can be a daunting task. There are myriad factors and interrelated parts that, in combination, make food security a complex challenge.

The Exhibition will run alongside the event and will show case latest technologies, products, and other innovative products

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A US agricultural trade mission met South African food industry delegates in Sandton this week for talks on developing trade relations between South African and US food producers.

According to the US Department of Agriculture (USDA), in 2012, the United States imported $285 million worth of South African agricultural products, led by wine, macadamia nuts, citrus fruit and other consumer-oriented food products. Interestingly, South Africa’s imports of agricultural products from the United States in the same period totalled almost the same value at $287 million, led by intermediate goods for further processing locally and consumer-oriented food products. “Diversifying our respective food baskets has been mutually beneficial, says Ross Kreamer, Minister Counsellor for Agricultural Affairs, USDA.

During a seminar entitled “Diversifying the Southern Africa Food Basket,” delegates addressed local importers, wholesalers, traders, retailers, hoteliers, restaurateurs, NGOs, institutional feeding organisations, food industry professionals and government representatives. Organisers introduced the audience to members of the USDA’s Global Based Initiative, which includes some of the US’s leading food trade associations: American Peanut Council; US Dry Bean Council; US Dry Pea & Lentil Council; US Potato Board; and the World Initiative for Soy in Human Health (WiSHH).

Aiming to increase trade with Southern Africa, the mission highlighted the high nutritional value and relatively low cost of soya, peanut, dry bean, peanut and lentil and dried potato products. They also noted the US growers’ ability to supply quality, cost-effectiveness, and a reliable, uninterrupted supply from a politically-stable nation.

Highlighting the nutritional value of their products, the representatives of leading food trade associations explored local needs and noted that their foodstuffs and food ingredients presented a strong value proposition in addressing malnutrition in sub-Saharan Africa. These organizations work closely with the US Department of Agriculture (USDA) to establish strong trade links.

Jim Hershey, Executive Director of the World Initiative for Soy in Human Health (WISHH), said world demand for soy has doubled in the last 15 years, with China, the country of origin of the plant, being the single largest importer. “South Africa has almost tripled its soybean production in the last ten years, but is still a net importer of soybean protein.”

Hershey noted that stunting rates, a strong indicator of chronic under-nutrition and protein deficient diets, are very high in Southern Africa. “Even South Africa’s stunting rate is greater than 20%, and probably higher in rural communities. With availability and affordability of protein being key factors contributing to stunting, Hershey pointed to the products represented at the conference as good sources for food. For example, South Africa is a leader, both in Africa and the whole world (outside of Asia), in the use of soy in local diets.

Cade Fields-Gardner, Nutrition Consultant for the US Potato Board, said in addition to a wide range of commercial uses, dehydrated potato products have been included in humanitarian and development efforts in emergency/disaster relief and school feeding programs. The potential value of US dehydrated potato products for the food industry in South Africa and the regions lay in addressing the nutritional health of young children in South Africa, where both undernutrition and overnutrition are current concerns, said Fields-Gardener.

Chris Goldthwait, consultant to the American Peanut Council said commercial sales of peanuts and peanut butter to Africa (not including countries that fall into the Middle East region) was about $11 million dollars in 2012 from nearly zero only a few years ago. “This was mostly in the form of high value processed peanuts and peanut butter,” he said. “It should be noted this was for 2012 – during which the US experienced its worst peanut crop ever harvested. We expect 2013 to be better.” Goldthwait noted that peanuts are high in important vitamins and micronutrients, containing nearly half the 13 basic vitamins, especially Vitamin E. “In fact, peanuts are the basic ingredient in Ready to Use Therapeutic Food (RUTF)and Ready to Use Supplementary Foods. “Peanut-based RUTF has the very best weight gain results for children under two suffering from severe, acute malnutrition,” he said.

Johanna Stobbs, the official representative in Europe, Turkey, Russia and sub-Saharan Africa of the USA Dry Pea & Lentil Council, noted that pulses including dry peas, lentils and chickpeas are excellent sources of protein, fiber and other essential nutrients. Stobbs said: “We are working with a highly nutritious, low-cost food, grown in perfect conditions. US dry peas and lentils are totally natural, non-GMO, pure and clean – offering good health and nutrition.”

The US Department of Agriculture reports that 2012 US exports to South Africa of dry peas, lentils and chickpeas rose to 9,340 MT, a massive increase of 170% over 2011. Dry peas are currently being sought after by South African canners because they are a nutritious and cost-effective alternative to fresh peas, Stobbs said.

The US Dry Bean Council’s Regional representative, David McClellan, said the United States on an average produces 1.2 million MT/yr of dry beans and exports between 300,000 and 450,000 MT/yr. He said: “The US is well known among canners and packagers around the world for its wide range of high quality dry beans. Dry beans are also popular for use in food aid operations, especially in Africa where dry beans are a traditional staple as well as being economical, nutritious and easy to store and transport.”

A relatively new dry bean product, pre-cooked dry bean flours have a range of applications in the bakery, snacks and meat industries, he said, as a product which can improve taste, texture and nutritional value.

·Peanuts are the basic ingredient in Ready to Use Therapeutic Food (RUTF) and Ready to Use Supplementary Foods

·Peanut-based RUTF has the very best weight gain results for children under two suffering from severe, acute malnutrition.

·Peanuts are moving off the “don’t eat” lists of weight-loss diets. The Dietary Guidelines for Americans, 2010 recommend foods like peanuts because they are high protein packages that include healthy fats and nutrients like dietary fibre, potassium, folate, vitamin E, thiamin, and magnesium. Research shows that frequent peanut eaters do not gain weight when following a healthy diet and replacing less healthy fats and snacks with peanuts.

·Peanuts are high in fat, but the majority of this fat is known to be heart-healthy monounsaturated fat, such as that found in olive oil.

·Peanuts are also an ingredient in other compound foods, including

*Peanut oil: valued by chefs because it is tasteless and odorless, as well as being high in desirable monounsaturated fatty acids

* Peanut flour: valued for flavor, as a gluten-free flour, and for its thickening properties

Soy protein and calories can help to prevent body wasting often associated with HIV/AIDS.

·In baking, the addition of soy flour to wheat flour enhances the protein content and the amino acid balance in the food, as well as increasing profitability for the baker. Water absorption by soy flour plus retention of moisture during baking (decreased bake loss) results in a greater yield that translates into increased product sales.

·One medium-size potato has just 110 calories and is fat-, sodium and cholesterol free

·One medium potato with skin provides 620 milligrams or 18% of the recommended daily value (DV) of potassium, 45% of the DV of vitamin C, 2 grams or 8% of the DV of fibre, 10% of the DV of vitamin B6, and 6% of the DV of iron.

·Potatoes provide one of the most concentrated and affordable sources of potassium. Research suggests that diets rich in potassium and low in sodium reduce the risk of hypertension and stoke. Potassium also plays an essential role in the response of nerves to stimulation and in the contraction of muscles, including the heart muscle.